Sungsimdang Closes All Stores on November 3rd for Staff Sports Day
The Day Daejeon Stops
When people think of Daejeon, many immediately think of ‘Sungsimdang,’ which is widely considered one of the best and most beloved bakeries in all of South Korea and a symbolic landmark of the city. The famous bakery announced that all its stores will be closed for just one day, on Monday, November 3rd.
On October 17th, Sungsimdang posted an official notice on its Instagram account, stating: “Breaking news. All Sungsimdang stores will be closed for only one day, on Monday, November 3rd, for our One Family Sports Day.” Approximately 1,000 executives and employees from 12 affiliated companies, including the Sungsimdang main branch, Sungsimdang Cake Boutique, Piatto (Italian restaurant), Udongya (Udon specialty restaurant), Flying Pan, Terrace Kitchen, and Oven Story, will participate in the event.
Netizens reacted with comments like, “Daejeon stops when Sungsimdang takes a break,” and “If you’re planning a visit, you should avoid that day.”
What is the Sungsimdang Sports Day?
The annual employee athletic event at Sungsimdang is the only day the company closes all year, typically held on the third Monday of October. This year, it is scheduled for November 3rd. It’s not just a simple athletic meet but an internal festival where all employees gather to reflect on the year and recharge.
The event, called the ‘One Family Camp,’ involves staff gathering at a main stadium for sports and talent shows. Notably, the prizes are quite generous, reportedly including an iPhone, a Dyson vacuum cleaner, an LG Styler, an iPad, and an Apple Watch.
The event was held on October 14th last year and is a long-standing tradition that has continued for decades.
What Do Employees Think?
While direct employee interviews are hard to find, the general atmosphere can be inferred from Sungsimdang’s well-known employee welfare standards. The company is famous for its exceptional benefits. Annual wage increases are reportedly kept around 15%, and long-serving employees are known to earn six-figure salaries.
The anecdote following the 2005 fire is particularly impressive. When the third-floor factory was completely burnt down just before the Lunar New Year, employees voluntarily posted signs saying, “Our company in ashes, let’s rebuild it ourselves,” and worked day and night on restoration. As a result, they achieved the miracle of reopening the store in just six days.
Such examples illustrate the high level of affection and loyalty employees feel toward the company.
Pros and Cons of the Sports Day
Pro: Practicing People-Centric Management
Organizational culture experts highly praise Sungsimdang’s decision. They analyze it as a symbolic practice of ‘people-centric management,’ prioritizing employee happiness over revenue loss, which ultimately creates a virtuous cycle leading to customer satisfaction.
Especially in the service industry, which is highly focused on customer interaction, a company-wide refresh is a key driver for long-term productivity. It is viewed as an investment in organizational health that reduces fatigue and strengthens bonds among employees.
Consumer psychology experts also provided an interesting analysis. They explained the ‘paradoxical goodwill effect,’ stating that “The emotional trust that ‘a good company can make this kind of decision’ outweighs the temporary inconvenience.” Indeed, many consumers expressed support for Sungsimdang’s decision, even if they couldn’t buy bread that day.
Con: Some Negative Perspectives
Some negative reactions were also seen online. Opinions included, “Is that really a holiday for the staff?” and “A company athletic meet seems stuck in the ’80s.”
Specifically, there was debate over whether a weekday sports day should be counted as working hours. According to the Ministry of Employment and Labor, activities solely aimed at strengthening bonds and camaraderie among members are excluded from working hours, but events conducted under the employer’s direction and supervision are recognized as working time. Experts suggest that Sungsimdang’s athletic meet is highly likely to be considered working time, given that it is held on a regular working day and attended by the company representative.
Nevertheless, positive responses were overwhelmingly dominant. Many commented, “It’s rare to see a company sports day these days, it looks fun.”
What Kind of Company is Sungsimdang?
Sungsimdang is a local enterprise started in 1956 by the late founder, Lim Gil-sun, a Korean War refugee, who began by selling steamed buns with two sacks of flour in front of Daejeon Station. The founder, who had been evacuated aboard the Meredith Victory during the harrowing Hungnam Evacuation, vowed, “If I survive this, I will dedicate my life to helping the less fortunate.”
Keeping that promise, out of every 300 buns made daily, 100 were given away to neighbors. This spirit of sharing continues to this day.
Sungsimdang has now grown into the representative brand of Daejeon. Rosso, the operating company, recorded sales of 193.7 billion KRW and operating profit of 47.8 billion KRW in 2023, surpassing national chains like Tous les Jours (29.9 billion KRW) and Paris Baguette (22.3 billion KRW). This is a remarkable achievement for a single-region bakery to outperform national franchises.
Sungsimdang practices EoC (Economy of Communion) management, based on the Catholic spirit of ‘Love, Sharing, and Honesty.’ One-third of the corporate profit is reinvested in the company, one-third is provided to those in need, and the remaining one-third is used to nurture those who will spread the shared economy model.
The value of the bread donated monthly amounts to 40 million KRW. Employees receive commemorative gifts and pure gold for long service, and enjoy a delicious free in-house cafeteria. Furthermore, about 15% of the sales profit is provided as employee performance bonuses.
Luigino Bruni, a world-renowned scholar of the shared economy, commented, “Sungsimdang is an alternative to capitalism that can solve both distribution and growth simultaneously, and a new model for a civic economy.” He added, “If that philosophy and management style were to spread, leading to the creation of 100 small and medium-sized enterprises, the structure of the Korean economy, which is centered on large corporations, would itself change.”
Concluding Thoughts
Sungsimdang’s closure for the Sports Day on November 3rd means more than just shutting a store for a day. It is a symbolic event that showcases a corporate philosophy prioritizing people over the pursuit of profit.
While individual employees may have varying feelings about the event, from welcoming to reluctant, having experienced an outdoor event where everyone gathers, I personally believe it is a good event as it tends to improve relationships among people.
It would be a shocking incident for those who make a big effort to visit Sungsimdang without seeing the notice, so I hope this news is widely spread to minimize such occurrences.
Note: Sungsimdang typically holds its Sports Day around the third Monday of October every year, so we recommend checking their official website or Instagram for the exact closing date before visiting.